PFA generates DKK 7.2 billion in returns and continues its growth in Q1 2017
PFA continues the positive development in 2017, showing solid returns of up to 5.2 per cent and increasing contributions. The total return amounts to DKK 7.2 billion, while contributions have increased by 13 per cent, totalling DKK 8.6 billion.
PFA’s operating profit amounts to DKK 403 million. Of this, DKK 344 million will be distributed to customers through CustomerCapital. This is possible because PFA's owners have declined dividends, so that the majority of the profit may be distributed to customers that have invested in CustomerCapital.
Regarding the financial statements, Allan Polack, Group CEO of PFA, says:
- After the fantastic annual results in 2016, I am satisfied that, in accordance with our Stategy2020, we are continuing to grow in 2017. We have generated solid returns of up to 5.2 per cent in just one quarter, and contributions have increased by 13 per cent. At the same time, we are streamlining operations and thus reducing the cost per insured by 2 per cent.
High returns to customers
Customers with market rate plans have received returns of between 1.7 and 5.2 per cent in Q1, including CustomerCapital. A result that Anders Damgaard, PFA’s Group CFO, is pleased with:
- The financial markets took off from the beginning of the year, and strong returns of up to 5.2 per cent were generated during the first quarter, so we must say that it has been a great start to the year, he says and continues:
- Nevertheless, it is important to keep in mind that pension savings should be seen in a long-term perspective, where long-term returns are crucial. Which is why we are also very pleased that the quarterly results support our ambitions to be on top when it comes to returns measured over a five-year period.
Over the last five years, PFA has delivered a total return of 65 per cent, including CustomerCapital, to customers with the recommended risk profile C with 20 years to retirement. Profile C is the most popular of the profiles among PFA's customers.
Improved sickness and accident insurance results
The development of the sickness and accident insurance results is as expected. The result is DKK -218 million compared to DKK -281 million for the same period in 2016, showing an improvement of DKK 63 million.
In this regard, Allan Polack says:
- It is a long process to turn around the sickness and accident insurance results, and the development must be looked at over time. The first quarter shows continued gradual improvement, which is going according to plan. We expect to see continued growth in future.
For further information, please contact:
Kristian Lund Pedersen, Chief Press Officer, (+45) 39 17 58 79 or email@example.com.
Total contributions amount to DKK 8.6 billion (DKK 7.6 billion)*
The loss on the sickness and accident insurance amounts to DKK -218 million (DKK -281 million)*
The total insurance profit before tax amounts to DKK 403 million (DKK 260 million)*
CustomerCapital's share of the profit amounts to DKK 344 million (DKK 207 million)*
Cost per insured amounts to DKK 183 (DKK 187)*
Total customer funds amount to DKK 449 billion (DKK 394 billion)*/**
Total return on investments amounts to DKK 7.2 billion
Customers with market rate products received returns of 1.7-5.2 %, incl. CustomerCapital
Return on average interest rate products amounts to 0.7 %.
*Compared with the same period in 2016
** The total customer funds are calculated as provisions for insurance and investment contracts plus CustomerCapital.